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Spain makes official request for bank aid

Spain makes official request for bank aid
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The Spanish government has formally asked the eurozone for cash to prop up its failing banks.

The economy minister Luis de Guindos has sent a letter to the president of the eurogroup of finance ministers requesting help to recapitalise the sector.

The letter said the amount needed and the repayment terms would be finalised by the time eurogroup finance minister next meet in a fortnight.

Spain finally admitted its banks would need a handout earlier this month.

Inspectors from the European Commission and the European Central Bank are now expected to travel to Spain to carry out their own assessment of how much is needed.

Some estimates say Spain’s banks need more than 60-billion euros of new cash to stay afloat. Eurogroup ministers have said up to 100-billion would be made available.

Spain is the fourth eurozone country to go cap in hand for a european bailout after Greece, Ireland and Portugal.